It is very clear in its perception that in the years to come, the leather exports have to be focused on the US. A strong dollar and the rapidly expanding market for leather footwear and garments makes the US an indispensable export destination for India.

According to CLE Executive Director S Audiseshiah, the council has prepared an action plan to carry out the strategy which aims to tap the US markets while retaining Indian leather's strong European presence. Now European countries, especially Germany, Italy and the UK, account for almost 70 per cent of the exports of leather and leather products from India. The US-share right now is a meagre 20 per cent. However, the US is an important market and accounts for almost 25 per cent of the $96 billion global trade in leather and leather products.

CLE action plan has demarcated the different roles to be played by the tanning and manufacturing sectors, the council itself, the Fashion Technology and Development Institute, the Central Leather Research Institute etc.

The plan is based on the trend in export of leather and leather products during the last seven years. It has looked into the areas of strength and weakness of the industry and made several suggestions to cope with the emerging international demand and also compete with the major Asian producers like China, Indonesia, Korea and Taiwan.

The council believes that for driving the Indian leather industry on a fast track, there should be extensive modernisation of the tanning industry.

Technology in the product sector has to be upgraded constantly and new designs, especially in the footwear segment, have to be developed.

Improvement of the human resources skill is another key area that needs attention.

Indian thrust has to be on footwear, both leather and non-leather, and footwear components, as they had been constituting 25 per cent of the exports from India.

Saddlery and harness is another product India has immense potential to export both to Europe and the US. It is the only product in which there is no Chinese competition as it cannot reach the superior quality of leather and workmanship of the Kanpur artisans.

``CLE action plan has kept in mind the WTO environment and the increasing competition the industry has to face in the coming years,'' the executive director said.

The council is also exploring new markets. The Latin American countries, Israel and Japan are being tapped in a special way. There was a strong Latin American and Israeli presence among the buyers that visited the just concluded IILF '2001. At present, a 12-member exporters team led by Mr Audiseshiah is in Japan. They will visit Tokyo and Osaka during the week from February 24 and explore the potential for exports of leather garments and leather goods among others.

Now Japan imports only about $9.06 million worth leather and leather products from India. Of these, finished leather accounts for $3.05 million, garments $2.49 million, footwear $1.03 million and leather goods $1.92 million.

CLE has also initiated a major plan to bring in Italian leather footwear manufacturers to India through joint ventures with Indian companies for setting up their export production bases here. An Italian team had come for the IILF '2001 specially to explore joint venture possibilities. They held discussions with over 17 Indian manufacturers and CLE is expecting their response for follow-up action by taking an Indian team to that country.